Fake marriages

Fake marriages

Sham divorces are driving up China’s overheated property market
Local and regional Chinese governments are cracking down on couples file for “fake divorces” to buy multiple homes. In China, families are restricted by rules that limit the number of homes they can own – a number that varies between major cities. However, resourceful residents keen to buy into residential investment opportunities have started filing for divorce as a tool to circumvent the restrictions. In Shanghai, a person with a hukou, or permanent residency, is legally entitled to buy two properties at most. Those without permanent residence can only buy one. But for years, crafty couples have been faking divorces to take advantage of the city’s first-time homebuyer scheme, which allows